Business
JPMorgan: Hit With $200 million Fines For Record Keeping Violations
December 18, 2021
January 14, 2022
Here are the numbers:
Government stimulus programs during the pandemic left consumers and businesses flush, resulting in stagnant loan growth and prompting CEO Jamie Dimon to say last year that loan growth was “challenged.”
But analysts have pointed to a rebound in the fourth quarter, driven by demand from corporations and credit card borrowers. They’ll want to see that show up in JPMorgan’s results, as that, along with the Federal Reserve’s expected rate hikes, are two primary drivers of the industry’s profitability.
Analysts may also ask the bank about the impact of its recent decision to rein in overdraft fees. JPMorgan said last month that it would give customers a grace period to avoid the punitive fees, a move that along with other changes will have a “not insignificant” hit to revenue.
JPMorgan chief operating officer Daniel Pinto said last month during a conference that fourth-quarter trading revenue was headed for a 10% drop, driven by a decline in fixed income activity from record levels. Offsetting that is an expected 35% jump in investment banking fees, he said.
